Blogs

Tax Update - November 2022

By NCCPAP Staff posted 11-29-2022 09:00 PM

  

Tax Update – November 2022

What's New

How is the IRS looking to spend its funds?

  1. Tax law provisions
  2. An implementation plan (by February)
  3. Implementation, processes, and ongoing communications feedback

The IRS is working on improvements that have been in the works for several years, particularly in the area of IT systems. In addition, Secretary Yellen has pushed for service levels to improve, so you can expect investments in both phone and in-person hiring over the next few years.


Information Return Intake System (IRIS)

As a result of Section 2102 of the Taxpayer First Act, the IRS is launching an online portal that will allow taxpayers to electronically file both small and large volumes of 1099 Forms. The new portal, known as Information Return Intake System (IRIS), will launch in January 2023 for tax year 2022.

With IRIS you will be able to:

  • Submit small or large volumes of Forms 1099 series; system will retain records from year-to-year
  • File electronically without software
  • Choose an electronic filing option

Beginning January 9, small volume filers will be able to file Forms 1099 series via the user portal. If the original return was filed on the portal, taxpayers can also file corrected returns, as well as auto extension requests via the portal. You can expect future updates to modernize the application to an XML format. While IRIS was not initially designed to replace Filing Information Returns Electronically (FIRE), ultimately the FIRE system will be retired.


FIRE TCC Holders

Taxpayers planning to file information returns electronically next year who were assigned a transmitter control code (TCC) before September 26, 2021, now have until August 1, 2023, to submit a new Information Returns Application for Transmitter Control Code (IR-TCC); otherwise, they will not have access to the Filing Information Returns Electronically (FIRE) system.

All new applications for TCCs must be submitted through the IR-TCC system. The new online system allows filers to maintain and update their existing TCCs through the online portal.

To submit a new IR-TCC, you will need:

  • Business Legal Name and employer identification number (EIN).
  • Business physical location and business mailing address.
  • Business structure (Corporation, LLC, Sole Proprietor etc.)
  • Business telephone number.
  • The form type(s) you’ll be filing electronically
  • Authorized Users, with a Social Security number or Individual Taxpayer Identification Number, title, telephone number, and date of birth.

Publications and website updates are currently being drafted, but not yet available. When ready, refer to Publication 5717 for the portal, Publication 5718 for A2A, and Publication 5719 for IRIS.


Please watch for the next NCCPAP Tax Update in January and have a wonderful holiday season.
#News
#advocacy
#News
0 comments
24 views

Permalink